I'm Cassondra Sells, owner of Sells Insurance in Arvada, an independent broker. My service is free to you because the insurance companies pay me, and I shop several carriers to compare coverage for you. "Covered peril" is one of the most important phrases in a home or renters policy. It's also one of the least understood, until someone files a claim. Here's what it means and why it matters along the Front Range.
The short answer
A peril is a cause of loss, like fire, wind, hail, theft or a burst pipe. A covered peril is a cause of loss your policy agrees to pay for, subject to your deductible, limits and exclusions.
Named perils vs. open perils
- Named perils policies cover only the causes of loss listed in the policy. If it's not on the list, it's not covered.
- Open perils (sometimes called "all risk") policies cover any cause of loss except the ones the policy specifically excludes.
Perils Colorado homeowners ask about most
- Wildfire. Fire is typically a covered peril. Homes near the foothills (Evergreen, Golden) should review their dwelling limits and how replacement cost is set.
- Frozen or burst pipes. These are often covered when sudden, but damage from long-term leaks or not keeping heat on may be excluded.
- Flood. Usually excluded from standard home policies.
- Earth movement / sinkholes. Usually excluded unless added.
- Sewer backup. Often excluded unless you add an endorsement.
How to check your own policy
- Find the "Perils Insured Against" section of your policy.
- Note whether your dwelling and personal property are covered on a named-perils or open-perils basis.
- Read the exclusions.
- Check your deductibles, especially for wind/hail.
Related: equipment breakdown coverage
Some home and business policies offer an add-on that covers sudden mechanical or electrical breakdown of things like furnaces, water heaters or business equipment. That's a separate topic, and we'll cover it in a future post.
Want a second set of eyes?
Policy forms differ from carrier to carrier, and that's exactly why it helps to compare. As a broker, I'll look at what your current policy covers and get free quotes from several carriers so you can compare perils, exclusions and deductibles side by side.
General information only, not a coverage determination. Your policy language controls.
Get a free quote: call (720) 634-7497 or visit sellsinsurance.com/homeowners/.